The rise of market‐based “choice” programs: 100 years of social sorting in social welfare services

Abstract

Social service programs in the United States increasingly focus on giving individuals and families more “choices.” The approach is exemplified by “choice programs,” where people receive services through various forms of market participation. Examples of choice programs include defined contribution retirement plans, housing vouchers, charter schools, and health insurance marketplaces. Individuals across the socioeconomic spectrum have become accustomed to choice programs, and one's social status greatly affects the types, qualities, and prices of services people receive. The importance of the conversation around choice programs for providing access to resources is immense. Yet, despite contentious debate about their utility, we lack a comprehensive understanding of the institutionalization and widespread adoption of choice programs across a diverse range of social service domains. This article synthesizes stratification literature on retirement, healthcare, education, and housing to document the historical rise of choice programs. Particular attention is given to explaining how behavioral patterns and routines become second nature, altering who benefits, who is left out, and the overall effectiveness of the social welfare system.